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CHAPTER 10 PRACTICE QUIZ
1. Scientists believe that if the Montreal Protocol is honored the o
Chapter 12 Quiz
1. Which of the following is considered a capital component for the purpose of calculating the
weighted average cost of capital (WACC)? Preferred stock.
2. The cost of a particular source of capital (debt, preferred stock, common stock) is
Chapter 9 Quiz
1. Which one of the following is the best example of a sunk cost? Burts spent
$18,000 last year to hire a consultant to evaluate the possibility of
starting a new project
2. Which one of the following should be considered as a relevant cash
Chapter 11 Quiz
1. Standard deviation measures Total risk while beta measures systematic risk
2. The systematic risk principle states that the expected return on a risky asset depends only on
which one of the following? Systematic risk
3. Which one of the
Chapter 14 Quiz
1. The residual dividend theory suggests that dividends should be paid to stockholders first and then
what is left can be reinvested by the firm. False
2. An investor purchased 300 shares of ABC Inc. stock on Wednesday, December 16. ABC pa
Quiz 1 Solution
Multiple Choices Questions (10 x 2 points each = 20 points)
1. A balance sheet is a financial statement that:
a. reports the cash flows of a firm as of a specified date.
b. reflects the firms assets and liabilities at a given point in time
The Project's cost is $10,000. The Cash flows are $2,000 per year for the
first 2 years; $4,000 per year for the next 2; and $5,000 in the last year.
The discount rate is 10% what's the NPV?
-10000 Discount Rate =
Week 2: Project Crashing
Normal time: normal amount of time required to complete an activity
Crash time: the minimum amount of time required to complete an activity
Normal time > Crash time
Crash cost > Normal cost
Example: Normal time (NT) = 10 days, CT
Week 2: CPM Example
Step 1: Identify all activities involved in the project and estimate the activity times. (The activity
information is given in the example)
Step 2: Determine the required sequence of activities and construct a project network.
Chapter 13 Quiz
1. Which one of the following is the company risk arising from the capital structure selected by a
firm? Financial risk
2. In a Chapter 7 bankruptcy, which one of the following will have the least priority when a
bankrupt firm's assets are